Labor Market Flexibility and Different Job-Matching Technologies Across Regions in India: An Analysis of State-Level Disaggregate Matching Functions

Woong Lee

No 14-4, Working Papers from Korea Institute for International Economic Policy

Abstract: This paper examines the relationship between labor market flexibility and matching function efficiency in India. With state-level disaggregated data, the matching function in India is estimated to investigate differences in the matching function efficiency across regions of different labor market flexibility. In addition, matching parameters are estimated in the respective regions that categorized by the degree of labor market flexibility. It is the first original work that uses state-level data to estimate matching function in India. The data are drawn from Employment Exchange in India, the only public job centre in this country. The results show that there is no link between labor market flexibility and matching function efficiency. The evidence indicates that regions having inflexible labor markets reveal entirely vacancy-driven job matching process, which implies lack of labor demand. For these regions, it is recommended that policies to boost labor demand such as employment subsidies are appropriate to create more employment.

Keywords: Labor Market Flexibility (Rigidity); Employment Protection Legislations; Matching Function; Indian Labor Market (search for similar items in EconPapers)
Pages: 67 pages
Date: 2014-12-30
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://dx.doi.org/10.2139/ssrn.2634339 Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:kiepwp:2014_004

Access Statistics for this paper

More papers in Working Papers from Korea Institute for International Economic Policy [30147] 3rd Floor Building C Sejong National Research Complex 370 Sicheong-daero Sejong-si, Korea. Contact information at EDIRC.
Bibliographic data for series maintained by Juwon Seo ( this e-mail address is bad, please contact ).